Bi-Weekly Report 20 March - 2 April 2018


GDP growth reached a 4-year high of 7.4% in FY:17, on strong stimulus measures and a favourable global backdrop

Headline inflation remained broadly unchanged for the third consecutive month in March (at 10.2% y-o-y), despite supportive base effects

The CBRT to keep its key monetary policy instrument on hold at 12.75% at least until December 2019



The banking sector bottom line improved further in FY:17, mainly due to a slowdown in provisioning



The profitability of the banking system strengthened in FY:17, mainly due to lower provisioning



The current account deficit widened temporarily in FY:17, mainly due to an unfavourable energy bill



Banking sector ROAE remained flat at a post-global crisis high of 13.5% in FY:17, despite strong domestic headwinds



Electricity generation declined markedly in FY:17, due to adverse weather conditions

Customer deposits (FX-adjusted) remained subdued in 2017, due to households' preference for high-yielding domestic debt

Credit growth, adjusted for large write-offs and FX variations, is estimated to have reached c. 1.8% in 2017



EC/ECB Post-Programme Review sees reforms momentum as a key to sustaining growth in the medium-term

The current account deficit widened sharply by 1.8 pps to a 7-year high of 6.7% of GDP in FY:17, exclusively on wider energy and ship trade deficits



Incumbent President A.-F. el-Sissi easily secured a second 4-year term

External adjustment has accelerated since the flotation of the EGP in mid-Q2:16/17 (November 2016), with the 4-quarter rolling current account deficit (CAD) narrowing to 3.9% of GDP in Q2:17/18 from 6.6% in Q4:16/17 and a 30-year high of 7.0% in Q2:16/17


Appendix: Financial Markets

Bi-Weekly Report 20 March - 2 April 2018

Contact Us

We are always ready to respond to your requests for information or to answer your questions about our products and services.

Request more information

Please complete the following details so we can provide you the information you need. In case of fraud, please contact our call center directly at 210 484 8484.
Optional custom content that replaces the the entire default content.